10: Betsson Group (2016)
Betsson slips one place down the rankings this year despite a 23% increase in revenues to £350m in 2015 and a 13% rise to £180m in H1 2016. However, the bare numbers are masked somewhat by last year’s acquisition of Europe-Bet. When stripping out Europe-Bet’s 2016 contribution, revenue growth in H1 was just 2%.
In addition, operating income (EBIT) took a knock in H1 with the metric down about 10% year-on-year. CEO Ulrik Bengtsson admitted the start of 2016 had been “difficult” with smaller than anticipated sportsbook margins and disappointing revenues in some markets, one of which is thought to be the UK where it has pushed its Betsafe brand relatively heavily.
In order to address these matters, Betsson recently made improvements to its sportsbook, upgraded its casino and bolstered its player numbers through a deal to buy the Lithuanian arm of TonyBet. Meanwhile, Betsson believes its Betsafe investment will pay dividends in the longer term with an encouraging number of sign-ups in recent months.
Betsson prides itself on its in-house technology and its single Techsson platform, which now houses all of its brands after a lengthy migration process. Earlier this year, the firm opened a new tech hub in London in order to attract top talent to develop new products and the fi rm became the first to launch an Apple TV gambling app – although the impact such products will have in the short-term is likely to be negligible.
Like old rival Unibet, Betsson will have to contend with the regulation of key markets such as the Netherlands and Sweden and rumours persist the pair may soon join forces to achieve the level of scale needed to absorb the tax hit. And if Ladbrokes can combine with Coral, then why not?